Trump Tariffs: Discover Which Indian Stocks Might Face the Heat – Insights and Market Analysis

Imagine walking into your favorite store and noticing that prices have suddenly gone up. That’s the potential impact of the latest tariff plan proposed by US President Donald Trump. With tariffs set to take effect soon, industries across the board are feeling the pressure.

According to Emkay Global, if the US imposes broad 10% tariffs, India could lose about $6 billion in exports. Should those tariffs rise to 25%, the loss could jump to $31 billion. This uncertainty is causing jitters in the market, leading many to wonder which sectors will be affected the most.

Let’s explore the key sectors and stocks to watch:

1. Electronics: Will iPhone prices rise?

Electronics are India’s largest export to the US, with $11.1 billion reported in FY24. More than half of that consists of iPhones assembled in India. Extra tariffs could raise prices for American consumers, complicating Apple’s efforts to shift its supply chain away from China. According to analysts, this scenario could make India less attractive as a manufacturing hub.

Key stocks to keep an eye on:

• Dixon Technologies
• Reliance Jio
• Bharat Electronics

2. Gems & Jewellery: A dazzling sector at risk

In FY24, India exported $9.9 billion worth of jewelry to the US, making up about 30% of total exports in this category. Since Indian gold jewelry imports already face a 20% tariff, any rise in US import duties could significantly harm Indian exports.

Key stocks to monitor:

• Titan
• Rajesh Exports
• Vaibhav Global

3. Textiles & Apparel: A potential shift?

US buyers account for 28% of Indian textile exports, worth about $9.6 billion in FY24. India is currently behind China, Vietnam, and Bangladesh in apparel exports to the US. If US tariffs on Indian textiles increase, it could be a setback. However, high tariffs on Chinese apparel might redirect US orders toward India.

Key stocks to consider:

• Page Industries
• Welspun India
• Trident

4. Automobiles: What’s the potential hit?

India exported $2.6 billion in automobiles to the US in FY24, most of which were auto components. If reciprocal tariffs rise to 70%, it could hurt Indian businesses that rely on US trade, especially component manufacturers.

Key stocks to watch:

• Tata Motors
• Mahindra & Mahindra

5. Pharmaceuticals: India, the medicine hub

With pharmaceuticals being a critical sector, India exported $12.5 billion in drugs to the US in CY24. American consumers rely heavily on Indian-made generics, which means that imposing tariffs would likely drive up drug prices in the US. Therefore, it seems less likely that tariffs will target this sector.

Key stocks to keep an eye on:

• Dr. Reddy’s
• Sun Pharma
• Lupin

6. IT Services: The unseen effects

The US is the largest market for India’s IT services. While tariffs may not directly affect IT companies, restrictive US policies could impact outsourcing contracts and H-1B visa approvals, which might affect firms relying on work done in the US.

Key stocks to be aware of:

• Mphasis
• Infosys
• TCS
• Wipro

Overall, while the US-India trade relationship faces turbulence, not all sectors are equally at risk. Emkay Global suggests that the overall impact may be less severe than anticipated, with sectors like auto, pharma, and electronics likely to weather the storm better than gems, jewelry, and apparel.

For readers interested in a deeper dive, the World Trade Organization provides extensive data on global trade trends. You can explore their findings here.

Source link

Trump tariffs, India exports, US-India trade, electronics exports, iPhone tariffs, Apple supply chain, gems and jewellery exports, Titan stock, textiles and apparel, auto component exports, Bharat Forge, pharma exports, Sun Pharma, generic drugs, IT outsourcing, H-1B visa, TCS stock, Infosys stock, Dixon

Check out this related article: Savor the Flavors: Indian Railways Expands Regional Cuisines on More Trains!

Technologies, Reliance Jio, Welspun India, Motherson Sumi, Rajesh Exports, Tata Motors, US tariffs impact, trade war, India stock market, sector-wise impact, ​Trump tariffs, trade war, reciprocal tariffs, import duties, economic impact, global trade tensions, protectionism, manufacturing, supply chain disruptions, tariff retaliation​